Retirement Glossary

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Alternate Payee is a person, such as the Participant's former spouse, child, or other dependent, who has a right to receive some or all of the Participant's benefits from the Pension Plan and/or the Supplemental Retirement Savings Plan based on a Qualified Domestic Relations Order.

Beneficiary is any person designated to receive benefits from the Plan upon the death of the Participant. A Participant may designate a pension beneficiary when they apply for pension benefits at retirement. A Participant may also designate a beneficiary for benefits payable from the Supplemental Retirement Savings Plan when they or their employer begin to contribute to the Plan. "Beneficiary" may also mean any person (other than a Participant) who may be entitled to receive benefits from the Plan, such as an Alternate Payee.

Collective Bargaining Agreement (CBA) or Contract is an agreement between Local 32BJ and an Employer that requires the Employer to make contributions to the Fund.

Contributing Employer is an employer who is required to make contributions to the Pension Plan and/or Supplemental Retirement Savings Plan.

Covered Employment is work for a Contributing Employer in a category of work for which the Employer is obligated by a Collective Bargaining Agreement (CBA) or Participation Agreement to make contributions to the Pension Plan or Supplemental Retirement Savings Plan.

Defined Benefit Pension Plan is a pension plan where a participant’s benefits at retirement are “defined” according to various factors such as length of service, benefit accrual rate (or benefit level) and age at retirement. The various 32BJ Pension Plans are Defined Benefit Pension Plans.

Defined Contribution Plan is a retirement plan where an individual account is set up for each participant and benefits are based on the contributions made to the account through employer and/or employee contributions adjusted for gains and losses. The Supplemental Retirement Savings Plan is a Defined Contribution Plan; it is also known as a 401(k) Plan.

Disqualifying Employment is employment in a category of work which makes you ineligible to receive a monthly pension benefit. Refer to the Summary Plan Description which applies to you for more information.

Participation Agreement is a written agreement between an Employer and the Trustees of the Plan which requires the Employer to make contributions to the Plan.

Participant is an employee who works in Covered Employment and who has met the eligibility requirements to earn Pension Credits in the Pension Plan, receive employer contributions or make 401(k) contributions to the Supplemental Retirement Savings Plan (SRSP). Typically, the eligibility requirements of the Pension Plan require that you work a minimum number of hours in a specified period of time to become a Participant. Please refer to the Summary Plan Description for more information.

Pension Service is based on time worked in the Plan, measured in hours, weeks or months worked in Covered Employment (see also "Service Credit"). Pension Service is tabulated on a Plan Year basis and is used to determine the amount of a Participant’s monthly pension benefit ; it is measured differently in each Pension Plan. Please refer to the appropriate Summary Plan Description for more information.

Plan means any of the Pension Plans covering eligible 32BJ members or the Supplemental Retirement Savings Plan.

Pension Benefit Guaranty Corporation (PBGC) is a federal agency that protects pension benefits if the Pension Plan ends (or terminates) without enough money to pay all the promised benefits to all its Participants. It is an insurance program that will pay the benefit provided by the Pension Plan up to the limits set by law. The Pension Plan pays insurance premiums to the PBGC to provide you this protection.

Qualified Domestic Relations Order (QDRO) is a court order or judgment that directs the Plan to pay all or a portion of a participant's benefits to a spouse, former spouse, child or other dependent in connection with child support, alimony or marital property rights.

Required Beginning Date (RBD) is the date you must start receiving your pension benefit. Your RBD is generally the April 1st of the first calendar year after you reach age 70½, even if you are still working in Covered Employment. If you are a Participant of the Supplemental Retirement Savings Plan, you must start to receive distributions from your account at your RBD after you leave Covered Employment.

Service Credit is based on time worked in the Plan, measured in hours, weeks or months worked in Covered Employment (see also "Pension Service"). Service Credit is tabulated on a Plan Year basis and is used to determine the amount of a Participant's monthly pension benefit; it is measured differently in each Pension Plan. Please refer to the appropriate Summary Plan Description for more information.

Suspension means a temporary stoppage or postponement in your 32BJ Pension Plan benefits if you return to work in the building service industry after you retire and start receiving your pension. See also "Disqualifying Employment". Refer to the Pension Plan Summary Plan Description which applies to you for more information.

Vested means you have earned a non-forfeitable right to a pension benefit. In other words, you cannot lose your pension benefit if you stop working in Covered Employment after you are vested. Generally, you become vested if you have five years of Vesting Service when you stop working in Covered Employment. If you stopped working in Covered Employment prior to 1999, you must have earned 10 years of Vesting Service. You are immediately vested in the Supplemental Retirement Savings Plan contributions your employer contributes on your behalf. Please refer to the appropriate Summary Plan Description for more information about vesting.

Vesting Service is the service which is used to determine whether you have a nonforfeitable right to a pension benefit at the time you terminate covered employment. Generally, you earn a year of Vesting Service for each year in which you work 1,000 hours. Please refer to the appropriate Summary Plan Description for more information about earning vesting service.

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